Some weeks after its press release on the possible inclusion of e-gaming into the scope of the e-commerce directive, the European Commission has presented a proposal for a Directive to create a real Internal Market in services by requiring Member States to cut administrative burdens and excessive red tape that can currently prevent businesses from offering their services across borders or from opening premises in other Member States.

Scope of the future directive

The proposed Directive covers all services provided to consumers and businesses except services provided directly by public authorities for no remuneration, in fulfilment of their social, cultural, educational or legal obligations.

The internal market principle becomes the rule

Following the example of the e-commerce directive, the proposed Directive aims to implement in practice the country of origin principle, whereby once a service provider is operating legally in one Member State, it can market its services in others without having to comply with further rules in those "host" Member States.

Service providers would no longer be subject to a plethora of divergent national regulations, administrative requirements and a duplication of supervisory controls which raise costs and often dissuade service providers from engaging in cross-border activities.

Gaming services : temporarily excluded…

For certain sensitive areas - cash in transit, gambling services and access to the activity of judicial recovery of debts, the proposed Directive would provide for the possible development of specific rules, by 2010 (art. 18 and 40).

Art. 40 : "The Commission shall assess, by [one year after adoption] at the latest, the possibility of presenting proposals for harmonisation instruments on the following issues: (…)b) gambling activities which involve wagering a stake with monetary value in games of chance, including lotteries and betting transactions in the light of a report by the Commission and a wide consultation of interested parties;"

A study should be launched soon to prepare that report.

To be continued…